RURAL ENTERPRISES AND REMITTANCES PROJECT(RERP)

“SAMRIDDHI”

Status Report Prepared to report the Mission Team(From 30th

October to 12th November 2017)

[Project Management Office(PMO) Itahari, Sunsari]

October 2017

Document Number: 4/2017

Abbreviation and Acronyms BDSPO: Business Development Service Providing Organization

COOPs: Cooperatives

CSIO: Cottage and Small Industry Office

DAO: District Administration Office

DADO: District Agriculture Development Office

DCCO: District Coordination Committee Office

DCO: Divisional Cooperative Office

DCCI: District Chambers of Commerce and Industries

DLSO: District Livestock Development Office

DMEGA: District Micro-Entrepreneurs Group Association

HH: House Hold

FNCCI: Federation of Nepalese Chambers of Commerce

FNCSI: Federation of Nepalese Cottage and Small Industries

GESI: Gender and Social Inclusion

GoN: Government of Nepal

IFAD: International Fund for Agriculture Development

IPs: Implementing Partners

ILO: International Labor Organization

MAPs: Medicinal and Aromatic Plants

MA: Migration Association

MEDEP: Micro-Enterprise Development Programme

MFI: Micro-Finance Organization

MoI: Ministry of Industry

MIC: Migration Information Centre

NGO: Non-Government Organization

NRNA: Non-Residence Nepali Association

PMO: Project Management Office

PRA: Participatory Rural Appraisal

PSC: Project Steering Committee

RERP: Rural Enterprises and Remittances Project

RMSE: Rural Micro Cottage and Small Enterprises

RRA: Rapid Rural Appraisal

SaMi: Safer Migration

SCC: Saving and Credit Cooperatives

SFACL: Small Farmer Agriculture Cooperative Limited

SIYB: Start and Improve Your Business

TOPE: Training of Potential Entrepreneurs

TOT: Training of Trainers

VC: Value Chain

WOREC: Women's Rehabilitation Center

Table of Contents

INTRODUCTION .................................................................................................................................................... 1

GENERAL BACKGROUND OF RERP .................................................................................................................... 1

OBJECTIVE OF THE STATUS REPORT ............................................................................................................... 1

COMPONENT ONE ............................................................................................................................................... 3

1. RURAL MICRO-COTTAGE AND SMALL ENTERPRISES PROMOTION ...................................................... 3

MAJOR ISSUES ON RMSES PROMOTION AND BDS MARKET DEVELOPMENT NEEDED TO BE DISCUSSED ............................ 4 WAY FORWARD .......................................................................................................................................................... 5 COMPONENT TWO ............................................................................................................................................... 6

2. FINANCIAL INCLUSION STATUS ..................................................................................................................... 6

MAJOR ISSUES ON FINANCIAL INCLUSION NEEDED TO BE DISCUSSED FOR CLARITY ........................................................... 7

3. MIGRATION STATUS ....................................................................................................................................... 9

SOME OF THE CONCERNS TO BE DISCUSSED ................................................................................................................. 14 WAY FORWARD ........................................................................................................................................................ 15 COMPONENT THREE ........................................................................................................................................ 16

4. FINANCIAL MANAGEMENT STATUS ........................................................................................................ 16

5. KNOWLEDGE MANAGEMENT STATUS .................................................................................................... 21

SOME ISSUES ON KNOWLEDGE MANAGEMENT NEEDED TO BE DISCUSSED .............................................................................. 23

6. TARGETING GENDER EQUALITY AND SOCIAL INCLUSION STATUS .................................................... 24

CHALLENGES ............................................................................................................................................................. 24

7. DATA MANAGEMENT STATUS ................................................................................................................. 24

SERVICE PROVIDER.......................................................................................................................................... 26

8. AEC SUPPORT STATUS ............................................................................................................................. 26

UPCOMING ACTIVITIES .............................................................................................................................................. 28 SOME CONCERNS ....................................................................................................................................................... 28 CORRIDOR OFFICES STATUS ........................................................................................................................ 29

9. JANAKPUR CORRIDOR OFFICE, MAHOTTARI STATUS.......................................................................... 29

MAJOR ISSUES ........................................................................................................................................................... 30 WAY FORWARD ......................................................................................................................................................... 30

10. KOSHI-SAGARMATHA CORRIDOR, ITAHARI SUNSARI ..................................................................... 30

MAJOR ISSUES ........................................................................................................................................................... 35 WAY FORWARD ........................................................................................................................................................ 35

Annexes

1

INTRODUCTION

General Background of RERP The Rural Enterprises and Remittances Project (RERP) "Samriddhi" is a seven year period

project funded by International Fund for Agricultural Development (IFAD) and executed by

Government of Nepal (GoN) Ministry of Industry (MoI) on 10 December 2015 through Project

Management Office located in Itahari of Sunsari district. The project has USD 68.15 million

budget. Agro-Enterprise Centre of Federation of Nepalese Chambers of Commerce and

Industry (FNCCI), HELVETAS, Non-Resident Nepalese Association (NRNA), Financial

Institutions extending services in rural areas are key partners in "Samriddhi". The project is

being implemented in a corridor approach in 16 districts namely Bara, Rautahat, Sarlahi,

Mahottari, Dhanusha, Sindhuli and Okhaldhunga from Janakpur Corridor and Bhojpur, Khotang,

Udaypur, Siraha, Saptari, Sunsari, Morang, Dhankuta and Tehrathum from Koshi/Sagarmatha

Corridor.

The project aims in reducing poverty and achieving sustainable peace through employment-

focused, equitable and inclusive economic development by providing sustainable sources of

income to poor households, migrant families and returnees. In line with the National

Development Plan, the Industry Policy and the Agriculture Development Strategy "Samriddhi"

will diversify the range of economic activities to support in creation and expansion of viable

rural, micro and small enterprises, both in the farming and off-farming sectors and attracting the

resources of those who have migrated for employment and their family members towards

productive investment.

Objective of the Status Report The main objective of this status report is to present the overview of the progress on different

theme component wise by RERP team members including the corridor offices and AEC of

FNCCI as major service provider to the upcoming first mission visit from IFAD Rome office and

IFAD Nepal office starting from the date 30th October to 12th November 2017. The updated

status on the following theme component wise, corridor offices including of service provider is

presented below;

COMPONENT ONE

1. Rural Micro-Cottage and Small Enterprises Promotion Status

COMPONENT TWO

2. Financial Inclusion Status

3. Migration Status

2

COMPONENT THREE

4. Financial Management Status

5. Knowledge Management Status

6. Targeting Gender and Social Inclusion Status

7. Data Management Status

SERVICE PROVIDER STATUS

8. Agro Enterprise Centre(AEC) Service Status

CORRIDOR OFFICES STATUS

9. Janakpur Corridor Office, Bardibas Status

10. Koshi-Sagarmatha Corridor Office, Itahari Status

3

COMPONENT ONE

1. Rural Micro-Cottage and Small Enterprises Promotion The RERP-SAMRIDDHI has three major components the Promotion of Rural Micro-Cottage and small Enterprise is related with component one. The Component 1 has a two-fold objective. First, it will provide micro and small entrepreneurs with sustainable access to adapted Business Development Services (BDS), so that they can expand existing businesses or create new ones. Second, it will assist members of poor households, and especially youth, to build their skills through vocational training and apprenticeship and to secure gainful wage employment in RMSEs. The Project is designed based on partnership module so according to design document Agro Enterprise Centre will play role to achieve first objective as mentioned in above paragraph and HELVETAS will play role in achieving second objective of the of the component one. In line of partnership development and RMSEs promotion RERP has performed several activities form 13 Feb 2017 to the date as below; SN Activities Involvement of project

staffs Status

1 Developed presentation during the initial stage of incorporated with key elements

Lead by BDS and supported by all staffs

Prepared and shared (Project document has been reviewed)

2 Information collection about Export and import from Mechi, Rani and Birgunj custom office.

BDS and corridor team Data processed

3 Developed handbook of PRA for targeting BDS Prepared and shared

4 Value chain selection criteria development BDS Prepared and Shared

5 LRPs selection criteria development BDS Prepared and shared

6 Baseline survey questionnaire developed BDS/All Prepared and shared

7 PRA conducted in two place (Saptari and Dhanusha)

All team Conducted

8 Baseline survey conducted in two place Corridor team and LRPs 62 targeted beneficiaries identified

9 Business motivation and selection training conducted

Corridor team and LRPs 62 persons participated

10 One commodity identified for VCD BDS, Private sector, community and corridor team

Lemongrass and citronella

11 Business planning BDS and Private sector Business plan developed of lemongrass and citronella product

12 Skill training for lemongrass & citronella farming and harvesting

RERP-Private sector 32 farmers has participated in training

13 Lemongrass and Citronella cultivation Farmer, RERP, Private sector

in 6 hector

14 Drafted MoU between RERP and AEC/FNCCI and build close coordination with FNCCI

RERP/FNCCI/IFAD MoU signed between RERP and AEC/FNCCI

15 ToR development for AEC staffs eg AEC Manager, Liaison Officer, Account officer, M&E/KM Officer, B2B Officer, Accountant,

Lead by BDS and All team members, AEC and IFAD

ToR developed

4

ESC Coordinator and Micro Enterprise Officer

16 Staff selection memo development BDS and AEC Memo Developed

17 AEC setup at central and corridor level RERP and AEC Staff hired

18 Drafted MoU for tri-partite between RERP, AEC/FNCCI and DCCI

RERP/FNCCI/DCCI MoU Signed with all 16 districts

19 Drafted MoU between RERP and HELVETAS RERP/HELVETAS and IFAD

MoU Signed

20 RMSEs development and BDS promotion guideline development

BDS First draft has shared

21 ESC Setup RERP/AEC/DCCI Vacancy announced

22 CPMA RERP Bidding Cancelled

23 District level start-up workshop RERP and DCCI 5 district had finished (Udaypur, Sunsari, Morang, Dhankuta and Okhaldhunga)

24 Coordinated with dairy and ginger enterprise Cosmos group of industries and KAMDHENU dairy

Coordination meeting conducted and data collected.

25 ESC strategic plan development BDS Draft outlined

26 Communication and outreach guideline Corridor Drafted first draft

27 Conducted meeting with private Sectors( Everest Aroma and COSMOS group of industries for buyback guarantee in two commodities (Essential oil and ginger)

BDS Agreed for buyback guarantee and waiting for ESC setup.

Major Issues on RMSEs Promotion and BDS market development needed to be

discussed 1. The cost of co-financing schemes in RMSEs promotion and development is less than the

current market thus revision is needed.

2. ESC operation mechanism should be modified according to new local level structure.

3. Local level role is not incorporated in the project planning process.

4. The basic infrastructures such as storage, market shed, irrigation support, processing

center where needed in the community for business promotion requires PBMG in the

individual basis but the reality is this should be for the group particularly for income

generating activity.

5. Revision in ESC management committee is needed. Project document envisioned co-

chair of ESC management committee from DCSIO/CSIDB but the changed local

structure now has this as business support unit in all Municipalities.

6. How could we collaborate with the provinces structure?

5

Way Forward 1. Co- financing should be revised based on the current market price.

2. Each local level representative should be included in the ESC management committee.

3. The RERP project support activities should be endorsed by rural/municipality assembly

and thus the planning should be clearly noted.

4. The design document has proposed only 5 members in ESC management.

DCSIO/CSIDB has proposed as members/co-chair in ESC management committee but

now both institutions are a part of municipality. There is need to have provision of more

than 5 members in the ESC management committee.

6

COMPONENT TWO

2. Financial Inclusion Status The project works with all types of financial institutions to ensure its beneficiaries and rural

people get access to the financial services at an affordable cost. We should strengthen financial

institutions including rural cooperatives working in the area. The strengthened cooperatives will

be linked with wholesale lending institutions and commercial banks. The presence of

microfinance institutions is substantial in our working districts. Most of the MFIs working in the

working areas we visited are interested to work in partnership with the project. We are cautious

to make partnership to avoid duplication of services. We have approached to following

microfinance institutions working in the project district.

Table: Microfinance Institutions in the working districts

In the same way we have approached to commercial banks such as Sunrise Bank, Sanima

Bank Ltd, Mega Bank Ltd, Kumari Bank Ltd, Muktinath Bikas Bank Ltd, Rastriya Banijya Bank,

Sana Kisan Bikas Bank to work in partnership with the project. We have not yet received any

positive message from other commercial banks but Mega Bank and Muktinath Bikas Bank Ltd

SN Name Address Category Status

1 Forward Microfinance Bittiya

Sanstha

Duhabi, Sunsari “D” class

Bank

Shared MOU

2 SOLVE Nepal Dhankuta FINGO Shared MOU ready to sign

3 Mithila Laghubbitta Bikash Bank Dhalkebar, Dhanusa “D” class

Bank

Shared MOU ready to sign

4 Grameen Swowamsewak Samaj Hariwan Sarlahi FINGO Visited and positive to work

5 Community Women Development

Centre(CWEDEC)

Rajbiraj, Sunsari FINGO Visited and positive to work

6 Mahuli Samudayik Laghubitta

Bittiya Sanstha

Mahuli Saptari “D” class

Bank

Visited and positive to work with

7 Jeevan Bikas Samaj Biratnagar, Morang FINGO Visited but reluctant to work with

8 Shirjana Community Development

Centre

Golbazar, Siraha FINGO Positive to work with

9 Rural Microfinance Development

Center

Putalisadak, Kathmandu “D” class

Bank

Shared MoU positive to work with

7

are interested to work with us in partnership. Verbal ideas sharing and trying to develop the

project is under discussion.

Attended in curriculum Design Workshop organized by Rural Microfinance Development Centre

where 42 financial institutions in which microfinance development banks, cooperatives and

financial intermediary-NGOs were present. Concept video script for financial education

programs is developed which is hoped to work as reference material for making financial

education training materials.

Guidelines for Performance Based Matching Grant (PBMG), Risk Sharing Mechanism are

prepared. MoUs and working modalities are shared with different financial institutions to work

with them.

A financial product targeting migrant is designed and shared with Kumari Bank and Muktinath

Bikas Bank. We have received initial positive response from Muktinath Bikash Bank to be

incorporated in coming days.

A preliminary assessment tool is prepared to bring the number of cooperatives in workable size.

Preliminary coordination committees is formed in Sunsari are in process of formation in Morang,

Dhanusa and Mahottari. For this purpose, information of saving and credit cooperatives and

Small Farmer Cooperatives will be updated and selected using preliminary assessment tool. We

are planning to work with cooperatives to cover every municipality so that we can claim our

presence in every municipality in the district. Further, the involvement of district cooperative

association and cooperative division make easy to work in the district. We are in process to

assess 200 co-operatives in Sunsari, Morang, Dhanusa and Mahottari . The learning from those

districts will help us to go ahead to work with cooperatives in other districts.

Major Issues on financial inclusion needed to be discussed for clarity

a. Risk Sharing Scheme has some complication to Committee formation, working

procedure, and service charge). A guideline is prepared but still it has technical difficulty

to function specially of loan and claim approval.

b. According to working paper page 138 para 2, the amount of PBMG should be as below

but our cost table has only USD 2,349,753.

8

c. It is targeted that 80% of cooperatives we work with should have remittance Services. As

we are planning to work all rural municipalities. It would be better to bear at least the

deposit to be kept by cooperatives to remit companies to provide remittance service.

d. During our visit with division cooperatives offices and cooperatives and other financial

institutions we found technical difficulties to implement the training of cooperatives and

bank with 25% and 50% of cost sharing by them respectively.

e. During our visit different financial institutions it was found that most of the commercial

banks are hesitant to provide wholesale loans to cooperatives.

Way Forward

1. Under risk sharing scheme we pay out only 3% of total outstanding loan. Our total

disbursement is $27.2 million and 3 % of that amount is $0.82 million. Even in the worst

scenario we will be paying 65% of $0.82 million that is $0.53 million which means we will

have still $ 0.35 million excess amount in the budget for risk sharing purpose. So it is

better to simplify our risk sharing procedure in such a way that project beneficiary get

loan with ease and our ESC also becomes sustainable too. We should promote our

ESCs as financial consulting firm and forward loan files through ESCs and generate

revenues. The banks which sanction loan for those forwarded files should pay some

service charges to ESC initially thought 50% of processing charge and 1% of repaid

loan for “A” , “B” and “C” class bank and 0.5% of loan disbursed amount for MFIs for

loans up to NRs 1.5 million. We should not share the risk of loan disbursed by

cooperatives as they are unregulated, difficult to track.

2. The performance based matching grant should be provided to all with requirement

mentioned in the project document and guideline. The rest should be adjusted in the

days to come.

Type Average

Investment

Average

Contribution Multiplier No of Enterprises Amount

Total

Amount

New Existing New Existing New Existing

A 40000 4000 2.5 2 19000 9000

190,000,000

72,000,000

262,000,000

B 350000 70000 1.5 1 5000 2000

525,000,000

140,000,000

665,000,000

Total

715,000,000

212,000,000

927,000,000

9

3. As financial services is primary need of enterprises.. The ESC should be set up in such

a way that it gives updated loans from those financial institutions working in the district.

The service provided in such way is backed with commission and service charges. We

are planning to develop ESCs as loan processing and supervising agent for other

branchless banking agents developed during the course of partnership.

4. We can find cost contribution from wholesale lending institutions for cooperatives

training so we should initial our effort in that part.

5. We have to bear the cost of loan appraisal visit and supervision and monitoring visit to

motivate commercial banks and wholesale lending insitutions to come to the

cooperatives. I have proposed local transportation arrangement for in my draft MOU.

3. Migration Status

In the initial phase of RERP/SAMRIDDHI Project, Migration theme based plan activities were

identified based on project documents. 5 years plan activities have been developed along with

plan and budge of 17-18 revised according to the agreed action.

According to the plan introductory meeting with project stakeholders at working districts was

conducted together with RERP, Project Management Office and Corridor offices team

members. These meetings and coordination with district level stakeholders and migration

related organization enabled favorable environment for communication and linkages with

returnee migrants and then established a good relationship with the stakeholders. Following are

the organizations visited at district level and central level in order to coordinate and disseminate

information of RERP's in the inception phase of the project.

Table: Organizations visited

S.N Activities Unit Quantity

1 Introductory meeting Carried out with stakeholders

(DCCI, SCIO, SAMI staff, MIC, MAs, NGO federation, DADO,

Cooperative Division etc.)

District 16

2 Information collection on migration

Migration related information has been collected through desk review

District 16

3 Coordination meeting held with (Asian Forum for Human Rights,

Paurakhi, PNCC, NRNA, IOM, WOREC, CMIR, Helvetas, FEPB)

Centre 9

4 Facilitated and supported for the project launch ceremony of district

level

District 3

10

Similarly as per the guidance from Start-Up support workshop organized in Ithari at the initial

phase together with IFAD team members and RERP migration related information of the

following districts was collected together with Koshi- Sagarmatha corridor as following:

Table: Gender wise migration related information desk reviewed

Source: Department of Foreign Employment 2073

Further, to collect information of Janakpur corridor based project districts, desk review was

done. From the desk review, following information was achieved and presented to the PMO

through presentation programme. The information collected under Janakpur corridor based

districts is as follows:

Table: Gender wise migration desk reviewed information

SN District Men Women Total %

1 Okhaldhunga 6013 347 6360 9.7

2 Sindhuli 6299 406 6705 10.3

3 Dhanusha 18849 47 18896 28.9

4 Mahottari 12562 46 12608 19.3

5 Sarlahi 10066 271 10337 15.8

S.N District Women Men Total %

1 Terahathum 84 2864 2948 3.7

2 Bhojpur 269 4926 5195 6.6

3 Dhankuta 192 3996 4188 5.3

4 Morang 1,002 15794 16796 21.3

5 Sunsari 611 10987 11598 14.7

6 Khotang 255 6220 6475 8.2

7 Saptari 29 11246 11275 14.3

8 Siraha 27 13918 13945 17.7

9 Udaypur 347 6013 6360 8.1

Total 2816 75, 964 78, 780 100.0

11

6 Rautahat 6526 82 6608 10.1

7 Bara 3718 87 3805 5.8

Total 64, 033 1, 286 65, 319 100.0

Source: Department of Foreign Employment 2073

From the desk review information, labor migration status analysis by gender was done as

following:

Figure: Labor Migrant‟s Status by Gender

Through desk review and the study of reference books, research documents, labor migration

flow by country has been identified as below:

Table: Number of Migrants to destination countries

(Fiscal year B.S. 050-051 to 073-074)

Countries No of Migrants

(Million) (%)

Gulf Cooperation Council (GCC) 2451680 (2.451) 56

Malaysia 1138280 (1.138) 26

Developed Countries 350240 (0.350) 8

India 175120 (0.175) 4

Others 262680 (0.262) 6

Total 43, 78000 (4.378) 100

Source: Nepal Rastra Bank 2073

Remittances are the major source of earning to the Nepalese economy as of Nepal Rastra

Bank's source shows 26 % of earning contributes to the GDP. The desk review and the study of

12

reference books and research, following trend of remittances inflow in the country has been

identified as below

Table: Remittances flow trend by year

Fiscal Year Million (US Dollar)

1994-1995

(2050-2051)

21.5

2015-2016

(2071-2072)

6170.0

2016-2017

(2072-2073)

6650.0

2017-2018

(2073-2074)

7330.0

Source: Nepal Rastra Bank 2073

According to the globlization and liberalization policy the Government of Nepal has undertaken,

safe labor migration and development initiatives. Remittances inflow and the scenario of the

uses of remittances has been desk reviewed and is presented as below:

Table: Scenario of the uses of remittances

Area of Uses Status (%)

Loan payment 25.3

Daily consumption 23.9

Health and education 9.7

Social functions 3.0

Capital formation 1.1

Saving 28.0

Source: Nepal Rastra Bank 2073

13

RERP/SAMRIDDHI project is going to be partnering with migration association or group to

deliver financial literacy classes, counselling services, migrant's networks development and

expansion, skill and resources mobilization in productive sectors. So, migration association or

group formation status is presented as followings:

Table: Group formation status

S.N Corridors Registered Registration Process Formation Process

1 Koshi- Sagarmatha 1 3 5

2 Janakpur 1 3 3

Total 2 6 8

The migration staffs are engaged in making plan, guidelines, strategies, concept papers as

required at the initial phase of project activities implementation: So, documents preparation

status has been presented as following;

Table: List of documents prepared

S.N Name of Documents Status

Guidelines

1 Migration Association formation guidelines Draft completed

2 Guidelines for Migration Information Centre Draft completed

3 Platform on Migration and Development Guidelines Draft completed

4 Migration Guidelines Draft completed

5 Migrant‟s family counseling guidelines (Psycho-social and re-integration

counseling) in Nepali version

Draft completed

Concept paper

1 Pre-departure Orientation Draft completed

2 Financial Literacy abroad by NRNA Submitted to NRNA

Planing Documents

1 5 years plan of migration Draft completed

2 Migration annual plan of 17-18 Draft completed

Terms of References (TORs)

1 Financial Literacy Module TORs Draft completed

14

2 MIC staff TORs Draft completed

3 Migration consultancy mapping TORs Draft completed

4 District Migration Situation and Stakeholders Analysis (local research)

TORs

Draft completed

5 Re-integration and peer counseling module TORs Draft completed

6 Leadership development & resources mobilization module development

TORs

Draft completed

7 TORs for returnee migrants Draft completed

Other Documents

1 Counseling documents for Migration Information Centre Draft completed

2 District coverage and outreach matrix Draft completed

3 Migration consultancy mapping (consultancy hiring ) On progress

4 Baseline survey questionnaires on migration Feedback given

5 Probation period detailed report Submitted

6 Probation Period Performance Indicators Submitted

7 Outreach and communication strategies Draft completed

8 Migration status report Completed

Some of the concerns to be discussed

1. Deficit budget in non-SAMI districts to operate MICs, one MA with coordinator is requried to

command over MICs, financial literacy, re-integration and peer counselling, capacity building of

MA leaders and to provide migration services

2. Project document has expressed capacity of returnee migrants, formation of MA and

registration of MA in SAMI 9 districts, but the finding of corridor office is no so. Capacity

building, formation of MA and registration of MA requires for 7 districts)

3. 16 project districts require Coordinators to provide support in implementing migration related

activities and reporting

4. Revision of TOT training participants (financial education, re-integration and peer counselling)

5. Financial literacy training abroad by NRNA (RERP concept paper emailed is not responding),

option may be Access Advisory.

15

6. Foreign Employment Promotion Board (FEPB) is underminging about partnership with

RERP/SAMRIDDHI for pre-departure orientation pilot in 3 project districts.

Way Forward 1. Nine SaMi district's contribution to operation cost can be used for the deficit budget of Non-

SAMI district

2. Capacity building of MA, formation of MA and registration of MA is a must in 7 SAMI districts

3. ESC migration officer's budget can be used for MA since migration officers have been

removed from ESCs

4. Reducing the size of participants for economical implementation of financial education

training and re-integration and peer counselling serviecs

5. Option of financial literacy training abroad might be Access Advisory only after discussion

with them

6. Initiative should be taken by RERP through letter from MOI to Ministry of Labor to have

discussion with FEPB

16

COMPONENT THREE

4. Financial Management Status

Project Costs:

The Project will be implemented over a seven years period on phase approach, with total

project costs of USD 68.14 million:

S.N. Components/Subcomponents Total USD’000 Per Cent

1 Promotion of Rural Micro-Cottage and Small Enterprises 31.82 46.70

2 Productive Investment 27.34 40.10

3 Institutional Support and Project Management 8.98 13.20

Total project costs 68.14 100.00

Project financing by source is as presented below:

GoN IFAD Loan IFAD Grant Beneficiaries Private

sector Total

USD(„000) 9.15 21.79 16.82 6.64 13.74 68.14

Percent 13.40 32.00 24.70 9.70 20.20 100

Total investment project costs, including physical and price contingencies, are estimated at

about USD 68.14 million. Funds allocated to institutional support and project management is

USD 8.98 million and represents about 13.20% of the total project costs. Promotion of Rural

Micro-Cottage and Small Enterprises accounts for USD 31.82 million which is 46.70% of total

project cost & Productive Investment USD 27.34 million with a percentage of 40.10% against

total project cost.

Project Financing:

IFAD loan and IFAD grant represent USD 21.79 million and USD 16.82 million respectively

(equivalent to 32% & 24.70% respectively of the total project costs) will be provided to finance

the project. The government contribution is estimated to be USD 9.15 million (13.40%) this

includes contributions from its budget and from foregone taxes and duties. Private sector-

financing institution is expected to finance USD 13.74 million (20.20%). Approximately USD

6.64 million or 9.70% of the total project costs of USD 68.14 million would be provided by the

beneficiaries.

The government shall provide counterpart financing for the project in order to finance inter alia,

the cost of all taxes, the salary of government staff assigned and its contributions that may be

due in connection with the project. The project financing by categories is as follows:

17

Disbursement Accounts by Financiers (USD)

IFAD LOAN %

IFAD

GRANT % Beneficiaries %

Private Sector-

Financing

Institutions

% The

Government % Total % For. Exch.

Local (Excl.

Taxes)

Duties &

Taxes

1. Consultancies - - 9141975 98.0 - - 1179 - 188967 2.0 9332122 13.7 2112738 7121436 97948

2. Equipment & materials - - 272373 40.3 - - - - 403630 59.7 676003 1.0 88459 499664 87880

3. Goods, services & inputs - - 2780021 61.6 - - 424592 9.4 1309299 29.0 4513912 6.6 157492 3769611 586809

4. Works - - - - - - - - - - - - - - -

5. Workshops - - 768,024 84.8 - - 8881 1.0 129082 14.2 905987 1.3 - 788,208 117778

6. Grants & subsidies - - 2999753 14.5 4800000 23.2 12914609 62.3 - - 20714362 30.4 - 20714362 -

7. Credit and guarantee funds 881444 100.0 - - - - - - - - 881444 1.3 - 881444 -

8. Training 16890711 65.9 53397 0.2 1836853 7.2 338883 1.3 6498298 25.4 25618143 37.6 43162 22244622 3330359

9. Vehicles - - 761892 87.0 - - - - 113623 13.0 875515 1.3 698920 62972 113623

10. Salaries & allowances 2671384 90.2 - - - - - - 289037 9.8 2960420 4.3 - 2960420 -

11. Travel & allowances - - 38147 87.0 - - - - 5700 13.0 43847 0.1 - 38147 5700

12. Operating costs 1351599 83.2 - - - - 61035 3.8 211083 13.0 1623717 2.4 - 1412634 211083

Grand Total 21795138 32.0 16815582 24.7 6636853 9.7 13749180 20.2 9148719 13.4 68145472 100.0 3100772 60493520 4551180

18

Project Financing Plan by Component (USD)

IFAD LOAN % IFAD

GRANT % Beneficiaries %

Private

Sector-

Financing

Institutions

%

The

Governme

nt

% Total %

A. Promotion of Rural Micro-Cottage and Small

Enterprises

Mapping and setting up capacities at district and regional

level 2266396 28.3 4,257,557 53.1 - - 364,529 4.5 1,123,747 14.0 8,012,229 11.8

Services for RMSE promotion and development 10312809 69.5 758,153 5.1 1,836,853 12.4 - - 1,928,754 13.0 14,836,568 21.8

Vocational training and apprenticeships 3931438 43.8 1,342,212 15.0 - - 208,778 2.3 3,489,805 38.9 8,972,234 13.2

Subtotal Promotion of Rural Micro-Cottage and Small

Enterprises 16510643 51.9 6,357,922 20.0 1,836,853 5.8 573,307 1.8 6,542,306 20.6 31,821,031 46.7

B. Productive Investment

Rural Finance 1534127 6.1 5,258,497 21.0 4,800,000 19.2 13,174,693 52.7 219,677 0.9 24,986,995 36.7

Mobilizing migrant resources and skills 367044 15.6 513,506 21.8 - - - - 1,475,599 62.6 2,356,149 3.5

Subtotal Productive Investment 1901171 7.0 5,772,003 21.1 4,800,000 17.6 13,174,693 48.2 1,695,276 6.2 27,343,143 40.1

C. Institutional Support and Project Management

Policy and Institutional Development 404,088 14.7 1,941,872 70.4 - - 1,179 - 410,348 14.9 2,757,488 4.0

Project Management 2,979,236 47.9 2,743,785 44.1 - - - - 500,789 8.0 6,223,809 9.1

Subtotal Institutional Support and Project Management 3,383,324 37.7 4,685,657 52.2 - - 1,179 - 911,137 10.1 8,981,297 13.2

Total PROJECT COSTS

21,795,13

8 32.0 16,815,582 24.7 6,636,853 9.7 13,749,180 20.2 9,148,719 13.4 68,145,472 100.0

19

Overall Progress

The AWPB for fiscal year 2017-18 is prepared for NPR 705.89 million (excluding private sector

& beneficiary contribution). The weighted financial progress for FY 2017-18 against the AWPB

is 2.59%. However, cumulative disbursement out of IFAD funds stands

approximately 8.09% & 8.85% respectively against IFAD Loan & Grant including initial

deposit provided by IFAD.

The cumulative expenditure of RERP “SAMRIDDHI” as of 15 October, 2017 by Category &

Component Sub-component is provided in Table No. 1 & 2 respectively. The reimbursement

made by IFAD against Loan & Grant (in terms of USD) is provided in Table 3 and expenditure

based on financier (in terms of USD) is shown in Table 4.

Table: Expenditure by category (as of 15 October, 2017)

Category Category description

Expenditure (NRs)

FY 2016/17 FY 2017/18 As of 15 October,

2017

A I Credit Guarantee Fund - - -

A II Training 646,972.70 12,489.00 659,461.70

A III Salary & Allowance 11,361,145.79 6,263,580.50 17,624,726.29

A IV Operating Cost 9,573,116.00 3,254,152.00 12,827,268.00

Total of Loan Category 21,581,234.49 9,530,221.50 31,111,455.99

B I Consultancies 2,858,894.00 2,858,894.00

B II Goods, Services & Inputs 9,788,943.55 6,719,470.00 16,508,413.55

B III Workshop 1,267,447.00 2,048,477.00 3,315,924.00

B IV Grant & Subsidies -

B V Vehicles 11,833,040.00 11,833,040.00

Total of Grant Category 25,748,324.54 8,767,947.00 34,516,271.55

Grand Total 47,329,559.03 18,298,168.50 65,627,727.54

Table: Expenditure by Component Sub-Component (as of 15 October, 2017)

Component Component description

Expenditure (NRs)

FY 2016/17 FY 2017/18 As of 15

October, 2017

1 Promotion of Rural Micro-

Cottage and Small Enterprises

10,253,001.17 8,967,947.00

19,220,948.17

1.1 Mapping and setting up capacities

at district and regional and national

level

10,253,001.17 8,967,947.00 19,220,948.17

1.2 Services for RMSE promotion and

development

1.3 Vocational training and

apprenticeships

2 Productive Investment -

2.1 Rural Finance

2.2 Mobilizing migrant resources and

skills

20

3 Institutional Support and Project

Management

37,076,557.87 9,330,221.50

46,406,779.37

3.1 Policy and Institutional

Development

40,000.00 40,000.00

3.2 Project Management 37,036,557.87 9,330,221.50 46,366,779.37

Grant Total 47,329,559.04 18,298,168.50

65,627,727.54

Table: Reimbursement from IFAD by category in US $ (as of 15 October, 2017)

Category Category

description

Allocated

Fund Reimburse

from IFAD Pending

1

Total IFAD

Fund

reimburse

Progress

%

A I Credit Guarantee

Fund 881,444

- -

A II Training 16,890,711 5,880.43 108.51 5,988.94 0.04

A III Salary & Allowance 2,671,384 94,530.78 54,029.73 148,560.51 5.56

A IV Operating Cost 1,351,599 81,217.39 27,601.40 108,818.79 8.05

Initial Advance 1,500,000.00 1,500,000.00

Total of Loan 21,795,138 1,681,628.60

81,739.64 1,763,368.24 8.09

B I Consultancies 9,141,975 26,840.10 26,840.10 0.29

B II Goods, Services &

Inputs 3,090,541 83,686.75

46,054.87 129,741.62 4.20

B III Workshop 821,142 11,125.97 17,797.37 28,923.34 3.52

B IV Grant & Subsidies 2,999,753 -

B V Vehicles 761,892 102,032.93 102,032.93 13.39

Initial Advance 1,200,000.00 1,200,000.00

Total of Grant 16,815,582 1,423,685.75 63,852.24 1,487,537.99 8.85

21

Table: Expenditure according to Financier in USD (as of 15 October, 2017)

Financier Allocated Budget Actual Expenditure Progress %

GoN 9,148,719 86,049.65 0.94

IFAD Loan 21,795,138 263,368.24 1.21

IFAD Grant 16,815,582 287,537.99 1.71

Private Sector 13,749,180

Beneficiary 6,636,853

Total 68,145,472 636,955.88 0.93

Note: Pending IFAD fund disbursement in terms of USD has been calculated taking the conversion rate from NRB

applicable for 15 October, 2017 i.e. USD 1 = NPR 103.59

5. Knowledge Management Status

In this inception phase of RER project Knowledge Management (KM) activities such as

Information, Education and Communication (IEC) materials have been published. Workshops,

trainings, documentation of activities, generation of knowledge and lesson learned through

study, field visits and consultation meetings at village, regional and national level was arranged.

These arrangements viewed of disseminating project overview including implementation

modality to key stakeholders and with wider audience. The activities also included discussion on

potential critical paths both in policy and functional level. Enabled the various players to get to

know each other better and become familiar with the management context and their respective

roles and responsibilities. The KM activities also expected to establish trust, relationships,

shared commitment and common ground between and among the team members. This

included building the understanding of the main methods and tools to be used in delivering

program.

In the very initial phase RER project brochure, official calendar, diary with the view of

disseminating project‟s basic information was published and distributed widely. Similarly, the

detail KM annual work plan has been prepared. To the date agreed action plan on KM has met

the required timeline and activities been conducted accordingly.

The start-up support workshop was organized at the project management office vicinity with the

core objective in receiving support from the IFAD mission team to newly recruited project staff of

RERP. This internal workshop arrangement provided the common understanding of the project

main objectives and expected deliverables, clarity on the thematic roles and responsibilities to

the project staffs and thus helped for the project activities start-up.

22

The start- up workshop guided for workshop cum training on knowledge sharing and learning on

Value Chain Development from the similar IFAD funded initiative, High Value Agriculture Project

(HVAP). Through the workshop, participants have understood on value chain concept,

commodity selection and its development process. Therefore, the workshop became crucial on

selecting commodities in corridor approach in close consultation of business community and

local relevant stakeholders. Further, such event also prepared in initiating collaboration and

partnership arrangement between and among IFAD funded projects in Nepal because it seems

relevant to organize similar knowledge sharing workshops with IFAD funded program that

enables to find bottleneck and critical path for the smooth operation of the project.

The national launch of RER project was commenced to share on main features of “Samriddhi”

project and its implementation plan to wider audiences. The formal commencement ceremony

of the project involved and engaged key partners and stakeholders in agreeing the common

ground of “Samriddhi” project. The half-day ceremony organized by Government of Nepal,

Ministry of Industry as an executing agency disseminated on project objectives, implementation

strategy, its cost and financing, the Public-private partnership (PPP) modality and the key roles

of partners in achieving the project goal. Together with the start-up ceremony Technical

Workshop was held to outline the key decisions and recommendations provided for the

implementation of RERP activities in the first year of operation. The workshop engaged a total

of 34 participants, including officials and representatives from Ministry of Industry, RERP staffs,

HELVETAS and AEC. The workshop supported the project team and executing partners in

understanding the project design and taking ownership of the project‟s goals and objectives.

Soon after the national level start-up workshop information and knowledge has been

disseminated through district level start-up workshops in the project targeted districts. Similarly,

knowledge and information is being gathered also from the village level while drafting the

knowledge management and communication strategy. The targeting and GESI knowledge has

been discussed developed and incorporated in the strategic framework of GESI and KM during

Intra-IFAD GESI workshop Nepal where IFAD funded project within country actively

participated. The knowledge management strategy of the project will get the final shape once

the major partners are on board and functional entity such as Enterprise Service Center (ESC)

is set up.

Knowledge generating activities has been continued in the RERP. The baseline study of the

project working districts that aims at establishing the project baseline database that serves as

the basis for quantitative and qualitative assessment of progress towards achieving the defined

outcomes and impacts of the RERP. The baseline study is being conducted through consulting

service provider; relevant and important knowledge will be captured during this course and be

disseminated for the purpose of knowledge.

A stock-taking study of the One Stop Shops (OSS) has been carried out that were set up by

GIZ-financed INCLUDE project, which closed a few years ago. The study viewed to draw

23

lessons of OSS and trace back players at Federation of Nepalese Chamber of Commerce and

Industry, District Chamber of Commerce and Industries (DCCI) for setting up and operation of

Enterprise Service Centers (ESCs) at 16 targeted districts of RERP. This lesson learnt has been

discussed among the project team and presented also with the relevant stakeholders along with

AEC staffs. The lesson learnt is expected to be reflected in the tools to be developed for setting

up with ESCs.

Similarly, a study of District Industry Promotion Committee(DIPC) a permanent multi-

stakeholder platform that can be created by the District Development (Coordination) Committee

as a specialized committee exist only in part of the target districts. The study aiming to analyze

experience with DIPC in and out of the target districts, with a view to identify successful models,

factors of success and lessons learnt to best support the creation/revival of DIPCs in the target

areas is being conducted in the due course.

The ICT for KM digital tool such as RERP website has been developed in supporting access to

information and knowledge dissemination of project activities also to remote areas. Knowledge

Management Specialist has been involved regularly in feeding communication and information

materials into the website together with Data Management Officer. This online knowledge

platform will be accessible to all ESCs, DCCIs across the country and FNCCI would be a

priority. Knowledge infrastructures such as dissemination boards as effective knowledge and

communication tool have also been set up in the Project Management Office and this idea is

being adopted in the Corridor Offices.

Some Issues on Knowledge Management needed to be discussed

Preparing PME/KM manual together with PME Specialist. KM and Communication Strategy is

drafted. The project document explains about hiring consultant in preparing Manual for ESC

operation and communication outreach as well. Will there be service provider in supporting the

prepartion of manual?

Record innovations and best practices achieved in the project areas and multiply them through

organization of Learning Route. Is service provider PROCASUR supporting the RER project in

applying learning route as described in project document as one of the service providers ? To the

date field level intervention has not been achieved so KM activities is limited only on

documentation, generating tacit knowledge. The Knowledge Management methodological tool in

developing the system is vital.

Capitalization of Experiences as knowlede management methodological tool.

24

6. Targeting Gender Equality and Social Inclusion Status In the targeting GESI theme, the work was mostly concentrated on drafting GESI strategy of the

project. Final draft of the strategy has been prepared to be forwarded to Project Steering

Committee and IFAD. In the due course, Intra-IFAD GESI thematic workshop was conducted in

order to discuss and receive feedback on the draft strategy from other IFAD project

experiences.

The primary target groups defined by the project document are not enough to maintain the

social inclusion criteria of the nation. Thus, inclusion target has been further defined

scientifically as per the population distribution of the working districts. Apart from the broader

target given by the project document, the project has to maintain the inclusion ratio as:

Muslim – 8.48%

Madhesi Socioeconomic Level 2- 32.53%

Terai Dalit Socioeconomic Level 3 – 12.11%

Terai Janajti – 9.67%

Hill Dalit – 3.34%

Hill Janajati – 18.85%

Others – 15.02 %

Similarly, the total target of the project has been worked to achieve the proportionate target for

each district based on primary beneficiary target defined by the project document and the ratio

of social inclusion stated in the GESI strategy. In addition, review of other thematic guidelines

and document and recruitment guideline of AEC were conducted. In discussion with BDS and

with the reference of ILO- Value Chain (VC) selection guidebook, RERP developed a checklist

to be followed while selecting the gender friendly and socially inclusive VC in the working

corridor. Further, the team has agreed to uplift the women target to be achieved from 33% to

50% in all the services to be delivered by the project. However, there is challenge to maintain

this threshold.

Challenges The RERP staff is stated to be comprised by 40 % female which is not achieved. No female

staff was recruited in the AEC staff composition although the recruitment procedure was

designed to be GESI friendly. In this scenario, the upcoming recruitment for the district and

PMO positions require more commitment to make the process gender friendly.

7. Data Management Status

Since the project is in its inception period and M&E system is yet in process of development,

priority was given on the preparation of guidelines for M&E system. On the part of Data

management, as a part of project M&E System, two major tools: Office Monitoring system and

Data collection System were developed.

25

As an introductory System, Office monitoring system, an online database system has been

developed with the vision of facilitating the office related activities such as Activity log, Work

Plan, field visit plans, phone book, vehicle information and log and staffs details that would

enhance the time saving that can further utilize in project activities. The system was developed

in-house using PHP, MySql, HTML and javascript languages. The major aim of developing

Office monitoring system is to maintain the records of staffs‟ activities that are performed during

their enrolment in RERP. It is perceived that this tool will also be helpful as a tool for institutional

memory of the project. The detailed information regarding the OMS has been prepared in the

form of OMS manual with the code of conduct and was distributed to all the staffs and

stakeholders.

For the preliminary data collection (Primary or Secondary) purpose with discussions from the

thematic specialists, KOBO data collection tool has been developing. This tool is fully online

system on which user can input the form details from their android smartphones or computers.

User can also input the data in the form when there is no availability of internet and later we can

upload the forms whenever internet is available. The information will be stored in cloud and we

can download those information in excel sheets and use them for the further analysis.

Beside this, the website of the RERP was developed and is in fully functional mode. The

website of RERP is customizable, user friendly and mobile responsive. Besides, the website is

customized in such a way that it acts as an online platform for sharing the public information

from and between the different stakeholders including Enterprise Service Centers (ESCs) that

are going to be established.

Taking into consideration of value of time, the RERP mobile application has been developed to

enhance the information dissemination to the broader range of audience. Also it is believed that

it acts as an efficient tool to get the information regarding the project activities for the project

managers during the time of meeting or any other official discussions. Furthermore, we can

conduct different surveys with the use of RERP application.

For the uniformity in the power-point presentation, the power-point master slide has been

developed in RERP. On the line of uniformity, Unicode Nepali has been defined as the official

Nepali font.

MIS guidelines have been drafted that mainly describes the need and types of MIS and different

procedures and the points that should be taken into consideration by the project before

developing MIS.

Currently as the part of data management, Data Management server with network system has

been established at PMO from which the staffs are able to push their information in the server

themselves and the information gets centralize in the Linux based server at PMO. It is planned

to make server accessible to both corridors.

Since there was the position of Planning, Monitoring and Evaluation Specialist in PMO which

was yet to be recruited, Data management Officer, as an integral part of M&E System, has

26

performed the facilitation role in the part of developing project M&E guidelines and strategy.

Along with that regular reporting to the ministry through supporting project manager and other

stakeholders has been performed to some extent.

Cooperative assessment tool is under the development process together with Financial

Inclusion Specialist. It is planned to make the assessment tool online where user can enter the

details of cooperative from remote part as well and the system will assess automatically

according to the criteria set by the project.

SERVICE PROVIDER

8. AEC Support Status

Rural Enterprises and Remittances Project (RERP)–SAMRIDDHI aims at providing sources of

income to poor households, migrants families and returnees in the Eastern and Central Region

of Nepal, by supporting the creation and expansion of family, micro, small and medium rural

enterprises, both in the farming and off-farming sectors. Agro Enterprise Center (AEC) under

Federation of Nepalese Chambers of Commerce and Industry (FNCCI) is the key implementing

partners. It provides services to DCCIs and promotes small producers‟ in the agribusiness

sector through the implementation of government and donor-financed development projects, in

partnership with DCCIs. RER/SAMRIDDHI set-up is based on public-private partnerships

geared to support inclusive and sustainable rural economic growth. The project implementation

arrangements also take stock of the long lasting and strong partnership between the

government and FNCCI/AEC. In this context, for setting up, management of the operation and

execution of the project following activities were carried out by AEC in this preliminary stage:

1) Major Agreements

Memorandum of Understanding Between Government of Nepal, Ministry of Industry, Rural

Enterprises and Remittance Project “SAMRIDDHI” And Federation of Nepalese Chambers of

Commerce and Inudstry/Agro Enterpries Center (FNCCI/AEC) on 14th July, 2017

Tripartite Agreement Between Rural Enterprises and Remittances Project (RERP), Federation

of Nepalese Chamber of Commerce and Industry/Agro Enterprise Centre (FNCCI/AEC) and

District Chamber of Commerce and Industries (DCCI) in Biratnagar and Janakpur on 13th and

14th August, 2017 respectively

2) Key Achievements

2.1 AEC Staff recruitment (Completed)

27

Prepared recruitment procedure and norms as per the AEC recruitment Policy

Recruitment Process from 23rd July 2017 to 11th September 2017 (Vacancy annulment,

short listing of candidates, written examination, interview and PowerPoint presentation

and final selection)

Deputation of recruited staffs to PMO and respective corridors

2.2 ESC Staff Recruitment (On-going)

Prepared recruitment procedure and norms as per the AEC recruitment Policy

Published Vacancy Notice on National Daily with 15 days applying period (Deadline 27th

Oct, 2017)

Regular coordination and facilitation to DCCIs for staff recruitment by AEC Manager and

AEC corridor staffs

2.3 Budget disbursement

Disbursement of budget (33,20,000 NPR and 30,39,000 NPR: by two cheques) to AEC account

on 10th October, 2017

3) Activities carried-out by AEC Manager at PMO

Attended PMO on 8th Oct, 2017;

Participated on District Startup Workshop at Dhankuta;

Actively participated on joint mission preparatory meeting and other regular office

meeting;

Prepared and disseminated monthly activity sheet and field report format to AEC staffs;

Working closely with BDS on ESC formation norms, procedure and preparation of

guidelines;

Involved in corridor mapping works;

Prepared ESC Vacancy Notice;

28

Regular coordination and consultation with DCCI for ESC vacancy ;

Working on preparation of documents for the formation ESC Management Board with

the technical support of PMO;

Reviewing of Project document and other relevant literatures for the preparation of ESC

operational manual;

Working together with BDS for the preparation of ESC business plan;

Working on preparation of outreach and communication strategy with corridor team

support;

Upcoming activities Procurement of logistics for AEC Staffs

Setting up ESCs

Formation of ESC Management Board

Opening of ESC Bank‟s account for the disbursement of budget for ESC office logistics

Selection and mobilization of LRPs and SPs

Training to ESC Staff

Some Concerns

How to incorporate local levels (municipality and rural municipality) of respective project

covering districts for the effective functioning and sustainability of ESC in this new

political context (Local level election has recently concluded in Nepal)

There is confusion in the establishment of ESC because DCCI are register as non-profit

organizations and according to the prevailing act of NGO in Nepal, it cannot make profit.

On the contrary, ESC is designed to make profit for its sustainability. In this situation, as

a wing of respective DCCI how an ESC can make profit? (Need further discussion and

legal consultation)

29

CORRIDOR OFFICES STATUS

9. Janakpur Corridor Office, Mahottari Status

1. Rapport has been built-up with district level line agencies and stakeholder under

Janakpur Corridor. During the visit meeting has been made with DCCI, DCC,

CSIO/CSIDB, Cooperative Division Office, CDO, SAMI, DMEGA, FNCSI, DADO, DLSO,

BDSPOs from Dhanusha, Mahottari, Sarlahi, Rautahat, Bara and Okhaldhunga and

Sindhuli Districts.

2. Identified potential Value Chain in Mahottari and Dhanusha districts (Essential Oil

(Dhanusha), Goat meat and Dairy (Mahottari).

3. Conducted PRA and well-being ranking and selected participants for promoting the

business on Essential oil bearing plants at Sitapur settlement of Bateshwor Rural

Municipality of Dhanusha.

4. 3 days long Business Awareness Training (SIYB-TOPE) and 3 days long Essential Oil

bearing plant skill training has been organized for 32 nos local people from HHS.

Accordingly, 32 local people started farming of Lemongrass and Citronella.

5. Contacted and interacted major marketer/exporter of essential bearing oil Everest

Aeroma Pvt Ltd and made linkage with the farmers of Sitapur for buy back gurantee.

6. Identification of major market centres and possible enterprises.

7. Collected the status of cooperatives.

8. Collected list of branches of financial institutions.

9. Collected list of import and export status of agricultural products from custom office

Birgunj.

10. Collected and compiled district profile of line agencies and stakeholders.

11. Migration household identified at selected VC commodity at Bateshwar-2 Sitapur,

Dhanusha.

12. Interaction with Migration Associations of Sarlahi, Dhanusha and Mahottari districts.

13. Organized exposure visit to the lead farmers involved on Lemongrass/Citronella farming

at Botanical garden Dhanushadham.

14. Tri-partite agreement among CCIs, AEC/FNCCI and RER project has been done for the

implementation of RER project and orient the CCIs personal's about the project modality.

15. District start up workshop was conducted at Okhaldhunga district in close coordination

with CCI Okhaldhunga.

16. Carried out Monitoring visit for observation of status of Lemongrass/citronella that has

been promoted by project at Bateshwar-2 Sitapur, Dhanusha

17. Participated at exposure visit of one stop shop/ start up agency promoted by INCLUDE-

GIZ.

18. Supported to prepare final draft of Monitoring and Evaluation manual, M&E matrix/

framework, Migration manual, BDS manual.

30

19. Supported to PMO for review of cooperative selection manual, PBMG manual,

operational guideline of RERP, brochures, TOR of AEC staffs etc.

20. Coordination made with the Cooperative Division Office of Dhanusha along with District

Cooperative Association of Dhanusha and Mahottari for assessment and capacity

development of Cooperatives in the district.

21. Prepared draft communication and outreach strategy and plan for Janakpur corridor.

22. Coordination made with Bara, Rautahat, Sarlahi, Mahottari, Dhanusha, Sindhuli and

Okhaldhunga district's line agencies, stakeholders, (CCIs, Migration/ Migrants/

Returnees Association, Cottage and Small Industry Office/Board, Local structure/

Municipalities/ Rural municipalities).

23. Prepared the list of potential market locations.

24. Office set-up made and managed essential logistics and accessories in office.

25. Conducted regular staff meeting in monthly basis and reported to PMO in regularly

basis.

Major Issues 1. Lack of availability of research/survey reports (Baseline survey, CPMA and Migration

Mapping) on time.

2. Implementing partners (ESC, Helvetas) are yet to be in place

3. Lack of vehicle, proper logistic arrangement and cost centre

Way forward Need to speed up all survey tasks (Baseline survey, CPMA, Migration mapping) which is

essential for program implementation in the districts.

MoU and contract with Helvetas along with ESC establishment and human resource

hiring need to be in place as soon as possible.

Vehicle arrangement for field activities is essential; therefore need to procure the vehicle

shortly. Likewise, essential logistics arrangement has to be in place such as Tables,

chairs, laptops (for AEC staffs), camera, invertor backup etc.

10. Koshi-Sagarmatha Corridor, Itahari Sunsari

1. Potential Entrepreneurs identification meeting ( Dharan and Saptari)

Koshi/Sagarmatha corridor organized a meeting with potential entrepreneurs at Dharan

17 and Saptari on 12 to 14 Jesth 2074. The aim of the meeting was to identify and get

their view towards business potentiality in this area. 23 HHs member in Saptari and 29

participants were participated in the meeting. Participants were oriented on RERP

concept and working modality.

31

2. Beneficiaries’ assessment:

Assessment is carried out using the tools of Rapid Rural Appraisal (RRA). It was

organized in Saptari, Bishanpur on 23 and 24 Jestha with the aim of identifying targeted

groups to promote RMSE. The process and method adapted in RRA were orientation,

social mapping, Pie Chat map, Attractiveness Matrix, Pair Ranking, shopping list

Collection, Flow Chart, group discussion, well-being assessment and need prioritization.

165 participants were participated in RRA. Before RRA coordination meeting with local

stakeholder (Community, DMEGA and DSCIO) was organized.

3. Business awareness training (TOPE)

Business awareness training has been conducted to potential entrepreneurs on 20 to 22

Ashad 2074 in Saptari, Rajbiraj.The aim of the training was to make aware of potential

entrepreneurs to start new business and to provide essential skill and knowledge in

regards to establish new enterprise. A total of 30 participants (11 male and 19 female,

Tarai Dalit, 11, Tarai jananati 5 and others 14 who were selected form RRA were

participated in the training.

4. Household Survey (HHs)

HHs survey has been conducted among the potential entrepreneurs in Bishanpur,

Saptari. Out of 165 participants who have been involved in RRA, 30 participants were

selected for cow/buffalo raising business through the stakeholders‟ meeting. Socio-

economic status, poverty, ethnicity and interest in dairy business were the selection

criteria. The HHs survey was done through structured questionnaire.

5. Data Collection of RMSEs, MFI, Banks, Cooperatives

Some relevant data regarding RMSEs, MFI, Banks, Krishi Bazari, Coperatives and

migration organization has been collected from all districts. The source of data was

publication, internet and interview with relevant stakeholders. Similarly data has been

collected from customs office (Biratnagar and Kakarbhitta) on export import commodity.

32

Table: Banks and MFIs working in districts

Districts

Number of

Saving/Credit

Cooperatives

No of

Agriculture

cooperatives

Number of Banks FINGO

A B C D

Sunsari 327 209 65 18 11 11 0

Morang 599 213 70 28 6 23 1

Dhankuta 70 99 9 6 0 3 1

Terathum 40 52 8 2 0 2 0

Bhojpur 95 37 10 1 1 4 0

Saptari 168 211 16 0 3 8 0

Siraha 237 236 32 1 0 22 1

Udayapur 89 127 17 2 0 7 0

Khotang 46 53 7 1 3 3 0

Total 1671 1237 234 59 24 83 3

6. Identification of potential commodity and market

To make general idea about potential commodity and market areas in the districts,

corridor team conducted field visit and met the representatives of DADOs, DCCI,

DSCIO/B, cooperatives, banks, MFIs and Krishi Bazar. Likewise, 2 farm sides in Sunsari

and two farm sides in Siraha visited to observe banana and Bagar farming. Primary data

on potential market of dairy product, potential agriculture commodity and markets point

for each district has been collected.

7. Coordination meeting with district level stakeholders

With the aim of introducing RERP and collect stakeholder view/idea regarding

coordination and collaboration for project implementation coordination meeting was

conducted with DADOs, DCCI, DSCIO, CWDC, DAO, MFIs, SaMi, peoples forum,

WOREC, DMEGA and local people. On the basis of past experiences and current

scenario of the district, they shared views and suggestion which will be relevant in

executing of RERP.

8. MA/MIC identification

33

RER/SAMRIDDHI project is in process for implementing the Migration Information

Center (MIC) in the surrounding area of District Administrative Office in each district;

however some project has already been organizing the MIC in the district. As the Koshi-

Sagarmatha level, 6 districts have been running the Migration Information Center (MIC)

out of 9 districts. 5 district have been running the MIC from the partner of SaMi Project

and 1 is run by the WOREC Nepal, below table shows the data of MIC/MA

MA will be the main center of the project to implement MIC in the district however the

MA is not found so active and sufficiently in the field. As per the table above the

Migration Association (MA) are not existed in the district sufficiently, only two SaMi

districts have united the migrant returnees as the association where the SaMi is

implementing the project in five district in the area. WOREC has formed 6 returnees

migrants worker in the VDC level. That is only focused to the women.

9. Corridor level staffs meeting

Corridor team has been conducting meeting in last Friday of each month. The review of

last month, planning for coming month, sharing of challenges and lesson learnt,

discussion on upcoming event and admin/finance related issue are discussed in

meeting.

10. Field Visit

Field visit was made in different places with a specific purpose. To rapport building and

make acknowledge on RERP project, corridor team visited districts level stakeholders in

7 districts namely Terathum, Dhankuta, Sunsari, Morang, Saptari, Siraha and

Udayapur.

11. Districts Start-up Workshop Organized in Udayapur,Sunsari, Morang and

Dhankuta

RERP project and District Chamber of Commerce and Industries ( DCCIs) jointly

organized one day district start up workshop in Udayapur Sunsari Morang and

Dhankuta districts respectively. The workshop in Udayapur was organized on 8th

S.N Name of districts MA NGOs Status Organizations involved

1 Morang 6 1 Not registered WoREC

2 Sunsari 1 2 Registering CSDC/SaMi

3 Saptari 1 2 Registering SCDC/SaMi

4 Siraha NA 1 Forming DCC/SaMi

5 Udaypur NA 1 Forming DCC/SaMi

34

September, Sunsari on 11th September, Dhankuta on 9th October and Morang on 13th

October 2017.

During the workshop, information was disseminated to district level stakeholders on

SAMRIDDHI project. RERP working modality, strategy, cost and financing, funding

mechanism, information on project partner and organizations were presented to the

stakeholders. This project start up workshop also made further coordination and linkages

with various organizations working in enterprises development, livelihood, market and

business development, safe migration and financial sector in the districts.

The total of 425 numbers composed of 319 male and 106 female participated from four

districts.

12. Meeting with District Cooperative stakeholders and Preliminary Cooperative

Selection Committee Formed

With core aim to preliminary selection of cooperatives, one meeting held among Division

Cooperative Office, District Cooperative Federation and RERP team in Sunsari district. A

brief discussion made on the preliminary cooperative selection guideline prepared by

RERP and feedback collected by the participants. Through massive discussion in

meeting, five members cooperative selection committee has been formed containing

members from District Cooperative Division, District Cooperative Federation, RERP

Project Officer, Financial Inclusion Specialist and Koshi-Sagarmatha Corridor

Coordinator.

This committee will work for cooperative data collection, processing, preliminary

selection and final selection of cooperatives in Sunsari district. Similarly this type of

committee will be formed in other working districts and the financial access of potential

entrepreneurs will have been ensured.

13. Coordination meeting with Micro finance institutions and Banks.

For the purpose to get access of potential entrepreneurs with MFIs, coordination

meeting organized with some Micro finance institutions under Koshi Sagarmatha

Corridor. One day meeting organized with SOLVE Nepal Dhankata which is working in

Terathum, Bhojpur and Dhankuta.

In this way, FORWARD Nepal Duhabi Sunari, Mahuli Community Micro Finance

Organization ltd of Saptari, NERUDE MFI in Morang and Jiban Bikash Samaj Morang

like MFIs are very positive to work with RER-Project.

14. Preparation of Guidelines and Plan

To support project implementation, various guidelines and corridor plan has been drafted

by Koshi/Sagarmatha corridor such as ESC outreach and communication plan, Migration

35

Association/Migration Information Centre formation guidelines, ESC Financial and

Administration guidelines, Monitoring and Evaluation Guidelines etc. Similarly one year

corridor level annual plan with monthly breakdown and M&E action plan has been

prepared and implementing. The corridor team assisted PMO for preparing and finalizing

various guidelines and documents in this period.

15. Tripartite agreement has been done among RERP, FNCCI and DCCIs.

16. Corridor office has been set up and all staffs are on board.

Major Issues

1. The national restructuring scenario has been changed into Municipalities and Rural

Municipalities. District level government organizations have been restructured and

set up in local level. In this situation how RER project modality can address the

expectation of local government?

2. As per the target allocated in 16 districts, PBMG seems very nominal and per head

grant is very low. Can this PBMG motivate potential entrepreneurs?

3. Banks are demotivated providing loan to poor entrepreneurs. In this scenario MFIs

and cooperatives are only option. Lack of risk mitigating scheme to MFIs and

Cooperatives is one of the major challenge to motivate Coops and MFIs.

Way Forward

1. Project should make strategy soon to address the interest of all local level

agencies.

2. Grant ratio should be increased and at least all entrepreneurs should get financial

support as per the progress they made after creating or extending enterprises.

3. Similar motivational scheme should be carried out to COOPs and MFIs.

36

Annexes

37

Details contact list of RERP Staff

S.N Name Duty

Station Designation Mobile Phone

Email

Official Personal

1 Saroj Prasad Guragain

PMO / Itahari

Project Manager 9851035685 025-476476 rerp.sarojpm@gmail.com guragainsaroj@hotmail.com

2 Guru Bhakta Shrestha

PMO / Itahari

Chief Account officer 9852056949 025-476473 rerp.gurucao@gmail.com stha.guru@gmail.com

3 Dol Raj Bhusal(Resigned)

PMO / Itahari

Project Facilitator 9841339652 025-476473 rerp.dolrajpf@gmail.com dol.bhusal@gmail.com

4 Rakesh Kumar Jha PMO / Itahari

Business Development Specialist 9844024856 025-476473 rerp.rakeshbds@gmail.com rakeshnp.jha@gmail.com

5 Lekha Bahadur Chhetri

PMO / Itahari

Migration Specialist 9857626395 025-476473 rerp.lekhams@gmail.com mssamriddhi073@gmail.com

6 Chandra Bahadur Waiba

PMO / Itahari Accountant 9842029532 025-476473 rerp.chandraacc@gmail.com cwaiba21@gmail.com

7 Kedar Ghimire PMO / Itahari Accountant 9841549200 025-476473 rerp.kedaracc@gmail.com kedarg177@gmail.com

8 Durga Prasad Pokhrel

PMO / Itahari Admin officer 9852041460 025-476474 rerp.durganasu@gmail.com dpocrel@gmail.com

9 Bishwa Bandhu Regmi

PMO / Itahari

Computer Operator 9846096933 025-476473 rerp.bishwaco@gmail.com regmisansar@gmail.com

10 Sagar Dahal PMO / Itahari

Financial Management Officer 9842047218 025-476473 rerp.sagarfmo@gmail.com dahal4sagar@gmail.com

11 Himnidhi Neupane PMO / Itahari

Data Management Officer 9857030371 025-476473 rerp.himdmo@gmail.com neupane.him@gmail.com

12 Jaya Ram Khadka PMO / Itahari

Financial Inclusion specialist 9841031385 025-476473 rerp.jayafis@gmail.com jayakhadka@gmail.com

13 Ritu Raj Bhandari PMO / Itahari AEC Manager 9841765223 025-476473 rerp.rituaecm@gmail.com rituraj_bhandari@hotmail.com

14 Sujana Dhital PMO / Itahari

Knowledge Management Specialist 9841710747 025-476473 rerp.sujanakms@gmail.com sujanadhital@gmail.com

15 Emil Pradhan

Koshi Sagarmatha Corridor Office B2B Officer 9815346197 025-476473 rerp.emilb2b@gmail.com emilpradhan@gmail.com

16 Sunita Pradhan PMO / Receptionist 9804065688 025-476473 rerp.sunitarec@gmail.com

38

Itahari

17 Kalawoti Rai PMO / Itahari GESI Specialist 9841265166 025-476473 rerp.kalagesi@gmail.com kalakoyu@gmail.com

18 Lokendra Bahadur Rawal

Koshi Sagarmatha Corridor Office

Corridor Coordinator 9848381478 - rerp.lokendracc@gmail.com lokendra.rawal@gmail.com

19 Raj Upreti

Koshi Sagarmatha Corridor Office

Monitoring & Evaluation Officer 9802798443 rerp.rajmeo@gmail.com

20 Sita Bhattarai

Koshi Sagarmatha Corridor Office

Monitoring & Evaluation Officer 9841362553 - rerp.sitapmeo@gmail.com tasibtr@yahoo.com

21 Bhagiram Tharu

Koshi Sagarmatha Corridor Office

Migration Officer 9848046915 - rerp.bhagirammo@gmail.com bhagiram@gmail.com

22 Manju Lingdam

Koshi Sagarmatha Corridor Office

Admin & Finance Officer 9842724422 - rerp.manjuafo@gmail.com manjulingdam@gmail.com

23 Moti Bahadur Giri

Janakpur Bardibas Corridor Office

Corridor Coordinator 9843181615 044-550724 rerp.moticc@gmail.com motigiri@Yahoo.com

24 Ajay Kumar Shah

Janakpur Bardibas Corridor Office B2B Officer 9844025185 044-550724 rerp.ajayb2b@gmail.com ajay.shahjnk@gmail.com

20 Mithilesh Kumar Jha

Janakpur Bardibas Corridor Office

Monitoring & Evaluation Officer 9844312746 rerp.mithileshmekmo@gmail.com mithilesh2037525@gmail.com

25 Rohit Prasad Joshi

Janakpur Bardibas Corridor Office

Monitoring & Evaluation Officer 9849054853 044-550724 rerp.rohitpmeo@gmail.com rohitpdjoshi@gamail.com

26 Jivan Kumar Shrestha

Janakpur Bardibas Corridor Office

Migration Officer 9854043600 044-550724 rerp.jibanmo@gmail.com jiban2035@gmail.com

39

27 Jibachh Raut

Janakpur Bardibas Corridor Office

Admin& Finance Officer 9864000666 044-550724 rerp.jibachhafo@gmail.com jibachhraut@gmail.com

28 Bishnu Hari Devkota Liaison Office Liaison Officer 9851083210 01-5535488 rerp.bishnuplo@gmail.com bishnuhd@gmail.com

29 Dev Raj Dhungana AEC Central Office Account Officer 981166414 devraj.dhungana@gmail.com

30 Ayush Sjb Rana AEC Central Office AEC Liaison 9851062217 ayush.rana124@gmail.com

31 Laxmi Kumari Pokhrel

Janakpur Bardibas Corridor Office

Office Assistance 9844224366 044-550724 - -

32 Chandra Kanta Neupane

PMO / Itahari Driver 9817679121 025-476473 - -

33 Kumar Shrestha PMO / Itahari Driver 9842368714 025-476473 - -

34 Kumar Bhujel PMO / Itahari Gardener 9844851190 025-476473 - -

35 Rajesh Yadav PMO / Itahari Office Assistant 9862283475 025-476473 - -

36 Tara Karki Khatri PMO / Itahari Office Assistant 9842079718 025-476473 - -

37 Naran Tamang Corridor Office Office Assistant 9804363154

38 Sharmila Devi Sunuwar

Liasion Office Office Assistant 9849422611 01-5535488

40

1. General Status of RERP

SN Particular Information

1 Project Title: Rural Enterprises and Remittances Project

2 Project Number: 1724

3 Project Sign: 10 Dec 2015

4 Financial year: FY. 2015/16 (Mid)

5 Planning period: 16 Jul to 15 Jul

6 Year of implementation Third year

7 Total project budget (in USD): 68.2 million

8 Total expenditures to date (in USD): 0.64 million

9 Date of loan effectiveness: 10-Dec-2015

10 Date of project start: 10-Dec-2015

11 Project duration: 7 years

12 Date of project closing: 31 Dec 2022

13 Date of First Supervision Mission 30 Oct 2017

41

2. Overall Progress Status of RERP up to October 2017

SN Name of the Agreements Date Place

1 Financial Agreement between GoV Nepal and IFAD 10 Dec 2015

2 Letter to borrower/recipient 4 Feb 2016

3 MoU between MoI and Helvetas Swiss Intercooperation 28 Feb 2017 MoI Kathmandu

4 MoU between AEC/FNCCI and RERP 14 July 2017 Hotel submit Kathmandu

5 Tri-Partite agreement between RERP, AEC/FNCCI and DCCIs under Koshi and Sagarmatha corridor (Udaypur, Saptari, Sunsari, Morang, Dhankuta, Bhojpur, Khotang and Terhathum)

13 Sep 2017 DCCI building Biratnagar

6 Tri-Partite agreement between RERP, AEC/FNCCI and DCCIs under Janakpur corridor (Bara, Rautahat, Sarlahi, Mahottari, Dhanusha, Sindhuli and Okhaldhunga)

14 Sep 2017 DCCI building Janakpur

7 Implementation agreement between RERP and Helvetas 17 Oct 2017 Helvetas office Lalitpur

8 MoU Final Draft with Banks/MFIs and Wholesale lending Institutions (Muktinath Bikas Bank, Mithila MicroFinance Institution, SOLVE Nepal, FORWARD Microfinance, Mega Bank, RMDC)

Ready to be signed, after Mission

--

3. Staff Recruitments and Office Set-up

SN Recruitment and office setup Date

1 First PM (Mr. Dirgha Narayan Paudel)

15 June 2016 to 6 march 2017

2 Liaison office setup 15 June 2016

3 PMO office setup 14 July 2016

4 Project expeditor (Dr. Hemant Ku. Dawadi)

16 July 2016 to 13 Jan 2017

5 Liaison officer 12 Aug 2016

6 Admin and finance staffs at PMO (government) 6 Oct 2016

7 Technical Staffs for PMO and Corridor Feb 2017

8 Corridor office setup 14 March 2017

9 Second PM appointment (Mr. Pradeep Shrestha)

10 April 2017 to 13 June 2017

42

10 Current PM appointment (Mr. Saroj Prasad Guragain)

19 June 2017

11 AEC Staffs appointment 11 Sep 2017

12 ESC Staffs recuritment On the process

4. Documents and System Design

SN Documents and System Lead

1 Value chain selection Handbook/GESI criteria BDS/GESI

2 PRA and wellbeing ranking handbook BDS

3 BDS guideline BDS

4 PBMG guideline FIS

5 Risk Sharing Scheme guideline FIS

6 Preliminary cooperative selection guideline FIS

7 GESI Strategy guideline GESI

8 KM and Communication strategy KMS

9 OSS Study and Lesson Learned KMS

10 Migration association formation guideline Migration Team

11 MIC Operation Guideline Migration Team

12 PMD operation guideline Migration Team

13 Migrant Family Counseling Guideline Migration Team

14 Pre Departure Orientation concept paper Migration Team

15 Financial Literacy Concept Paper for abroad Migration Team

16 Migration outreach and communication strategy Migration Team

17 PM&E strategy and guideline M&E Officers/DMO

18 MIS guideline DMO

19 Office Monitoring System DMO

43

5. Knowledge Events, IEC Materials

SN Items Lead by Date

1 Project Orientation (Project Staffs) PM 12 March 2017

2 IEC Materials (Brochure, Office calendar and Project note book) KMS 20 April 2017

3 Start Up Support Workshop IFAD 25-27 April 2017

4 Knowledge sharing workshop on VCD and M&E HVAP 30 May to 03 June 2017

5 Technical Workshop IFAD 14-16 June 2017

6 National level Start-Workshop MOI 18 June 2017

7 Intra IFAD GESI Workshop GESI 23-24 Aug 2017

8 K-S Corridor level orientation workshop Biratnagar BDS 13 Sep 2017

9 Janakpur Corridor level orientation workshop BDS 14 Sep 2017

10 District level start up workshop Udaypur KS Corridor 8 Sep 2017

11 District level start up workshop Sunsari KS Corridor 11 Sep 2017

12 District level start up workshop Dhankuta KS Corridor 9 Oct 2017

13 District level start up workshop Morang KS Corridor 13 Oct 2017

14 District level start up workshop Okhaldunga JNK Corridor 15 Oct 2017

20 Data Repository System DMO

21 RERP Website developed DMO

22 RERP mobile android app DMO

23 Application Form/Baseline Form BDS

24 ESC Outreach and Communication Guideline Corridor

25 ESC Operation Manual Corridor

26 Outline of ESC Strategic Plan (5 years) BDS

27 General operation guideline PF

44

6. Field Level Intervention and Lessons Learned

45

Bishnupur, Saptari – 30 Sitapur, Dhanusa – 32

46

Sitapur, Dhanusa, Janakpur corridor

47

7. Lessons from the Field

• Loan as precondition for PBMG especially for IGA is unfavorable.

• Grants for business promotion micro infrastructure set up should be flexible for group approach.

• Involvement of local financial institutions and branches in beneficiary selection could be

effective. • Cooperatives were uncomfortable with assessment process before project intervention.

8. Status of Agreed Action Plan from Technical Workshop

Agreed Action Agreed Deadline Status

Strategic Planning

Thematic Work Plans to be further improved and finalised 4-Aug Completed

One comprehensive Work Plan to be prepared by merging the detailed thematic plans, and shared with IFAD for review and comments

8-Aug Completed

Revise the AWPB and Procurement Plan (FY 2017-18) based on the Work Plan and workshop discussions 15-Aug Completed

Component 1, AEC Partnership

Sign the MoU with AEC as soon as possible 14-Jul Completed

Prepare the Manual of Operations and a detailed work plan for the first year 14-Nov Draft prepared

Develop the required tools and methodological guidelines, for inclusion in the ESC Manual of Operations 16-Dec Draft prepared

Launch the recruitment of ESC staff (through DCCIs) and of corridor team and national level staff 1-Sep In progress

Hold the pilot intervention in Saptari and Dhanusa until ESCs and all necessary tools are in place 15-Sep Done

Component 1, Helvetas Partnership

Finalize and approve the Helvetas Implementation Plan as soon as possible 11-Aug In progress

Aligning/connect the Employment Fund M&E with RERP M&E 15-Nov To be done

Identify labour and training needs using information generated by CPMA and ESCs 31-Oct To be done

Develop a performance-based approach to implement the apprenticeship programme 30-Mar 2018 To be done

Begin regular meetings and exchange of information between Helvetas and ESC/AEC teams 15-Sep To be done

Begin regular meetings and exchange of information between Helvetas and ESC/AEC teams 15-Sep To be done

Component 2.1 Financial Inclusion

Set up implementation arrangements for financial instruments supporting enterprise lending (PBMG and RSS) 16-Nov Draft prepared

Develop detailed modalities for the delivery of the new financial instruments outlined in the PDR 16-Nov upon arrival of TA

In progress

Finalize the PBMG implementation modalities and fund flow mechanism in consultation with the IFAD FM Consultant 16-Aug Draft prepared

48

Reassess the Risk Sharing Committee composition described in the PDR to evaluate practicality and identify effective changes

15-Sep To be discussed

Revise the Departure loan buy-back scheme in consultation with the Foreign Employment Promotion Board, preserving initial objectives are met

17-Oct To be discussed

Component 2.2 Mobilizing Migrant Resources and Skills

Develop the Migration Manual in consultation with SAMI, and integrate into the Manual of Operations for Sub-component 1.2

31-Sep Draft prepared

Revise the TOR for the Mapping and needs assessment to align with indications in WP5 and workshop discussions 31-Aug Completed

Define a generic model for the District Task Force (mandate, composition, responsibilities, frequency and organisation of meetings) as a framework for each District to adapt and use

1-Nov Completed

Redesign the programme on Financial education for migrants abroad based on lessons from ACCESS IFAD

Crosscutting

Develop contact with the ACCESS Team for sharing of information and lessons, including guidelines, modules and other available KM products, to support scaling up of best practices

15-Aug Completed

Component 3

Complete all pending recruitments 8-Oct In process

Mobilize international and national TA for support to ESCs 9-Nov In process

Hold Project team meetings on a regular basis Immediate Regular

Engage AEC and Helvetas staff in management meetings and project information flows at the various levels Immediate Regular

Engage newly elected officials in the District Industry Promotion Committees (DIPCs) and in the District Task Force on Migration and Development

30/09/2017 (Ongoing)

To be done

GESI

Update the poverty classification in line with new GoN regulations 30-Aug Done

Develop a detailed GESI strategy 15-Sep Drafted

Training for all ESC staff on mainstreaming GESI concerns in project activities 15-Dec To be done

M&E and KM

Develop the Project M&E systems to monitor project activities and outcomes, including the ESC level 30-Sep Drafted

Draw lessons from the One Stop Shops set up by the INCLUDE project, and organize a workshop gathering project and AEC staff for next steps

15-Sep Completed

Draw lessons on the District Industry Promotion Boards on how best to support the creation/revival of DIPCs in the target areas.

20-Nov In process

Develop an online knowledge platform accessible to all ESCs, DCCIs and FNCCI, for sharing of various project guidelines, business information, and others.

Done Completed

49

9. Issues discussed during presentation 1. Revision of Project Mechanism as per the new structure

• ESC operation mechanism • ESC management committee • Project planning process • DIPC existence, Collaboration with provinces ?

2. Cost of co-financing schemes in RMSEs promotion • Lower than the current market value

3. Cost allocation of Financial Inclusion • Cooperative: Preprogram cost-12%, program cost-37%, monitoring cost -51% • FIs: Preprogram cost -57%, Program cost -43%

4. PBMG Budget • Per beneficiary PBMG amount is USD 67/ (Total Budget is USD 2,349,753 and Beneficiary number is 35000)

5. Risk Sharing Scheme technical difficulty

• Committee formation, service charge • Loan and claim approval

6. Working modality with cooperatives

• Especially remittance service

• Expenses – computer, internet

7. Implementation of capacity building training

• Cooperative Cost Sharing, 25%

• Banks cost sharing, 50%,

8. Issues with commercial banks

• wholesale lending to cooperatives

• Some motivation facilitation to the banks

9. Budget deficit to work with non-SaMi districts

11. Working with MAs in SaMi districts

• No registration of MAs (except in 2 districts Khotang, Sarlahi)

• Require capacity building

12. Need of human resource to implement migration activities

• Cancellation of Migration Desk in ESC

• Coordinator for all 16 districts

13. Revision of ToT training participants

• For financial education (15), re-integration, peer counselling (10)

14. Implementation of financial literacy abroad

• Coordination with NRNA could not be established

• ACCESS Advisory/PNCC might be an option

15. Acceptance by Foreign Employment Promotion Board ?

16. Working with PROCASURE

• Dilemma in working with PROCASURE, big amount in the starting of the project

• Opting Capitalization of Experiences

17. Consultant services for strategy/guidelines/manuals